39.2

INTENTIONAL PROGRAM VIOLATIONS

For
the purpose of determining through administrative disqualification hearings
whether or not a person has committed an intentional Program violation,
intentional Program violations shall consist of having intentionally: made a
false or misleading statement; misrepresented, concealed or withheld facts;
traded food stamp coupons for guns, ammunition, explosives, or controlled
substances; or committed any act that constitutes a violation of the Food
Stamp Act, the Food Stamp Program Regulations, or any state statute relating
to the use, presentation, transfer, acquisition, receipt, or possession of
food stamp benefits.

The
Department shall be responsible for investigating any case of alleged
intentional program violation, and ensuring that appropriate cases are acted
upon either through administrative disqualification hearings or referral to a
court of appropriate jurisdiction.Individuals accused of intentional program violation may waive their
rights to administrative disqualification hearings (Refer to 1240-1-20-.04)
or sign disqualification consent agreements for cases of pre-trial
diversion.The requirements and
procedures relating to administrative disqualification hearings, waiver of
the hearing, and referrals for prosecution are outlined in the rules of the
Administrative Procedures Division, (Refer to 1240-5
-14 Intentional Program Violations).

If an administrative disqualification
hearing official or a court of appropriate jurisdiction determines that a
household member has committed an intentional program violation as defined
above in the introduction to this section, or if the household member signs a
waiver of right to an administrative disqualification hearing or an
administrative consent agreement, that individual shall be disqualified from
participation in the Food Stamp Program as follows:

1.One year for the first violation,

2.Two years for the second violation, or for the
first occasion of a finding by a Federal, State, or local court of the
trading of coupons for a controlled substance as defined in 8 USC 802.

3.Permanently for the third violation.

4.Permanently if convicted of trafficking in
food stamp benefits of $500 or more, or for the second occasion of a finding
by a Federal, State or local court of the trading of coupons for a controlled
substance as defined in 8 USC 802, or for the first occasion, based on a
finding by a Federal, State or local court of the trading of firearms,
ammunition, or explosives for coupons;

5.Ten years if found to have made a fraudulent
statement or representation with respect to identity and residence in order
to receive multiple benefits simultaneously, or

6.The length of time specified by a court of
appropriate jurisdiction.If the court
fails to impose a disqualification period, the state agency shall impose the
disqualification penalties in 1.-5. above, unless the penalties are contrary
to the court order.

(b)One or more intentional program violations,
which occurred prior to April 1983, shall be considered as only one previous
violation when determining the appropriate penalty to impose.

(c)The disqualification shall apply only to the
individual who is found to have committed the intentional program violation,
or who signed a waiver to the administrative disqualification hearing, or who
signed a disqualification consent agreement.It does not apply to the entire household.

(d)Remaining Household Members.Once a household member is disqualified for
an intentional programviolation,
the Department shall impose allotment reduction as the means of restitution.

(e)Notification to Applicant Households.The Department shall inform the household
in writing of the disqualification penalties for intentional program
violation each time it applies for program benefits.

(f)Imposition of Disqualification Penalties.

1.The disqualification penalties outlined in
paragraph (2)(a) of this section shall apply only to individuals disqualified
for acts of intentional program violation which occurred either during a
certification period based on an application form containing these penalties
or after receipt of written notification from the Department of these
penalties.If the act of intentional
program violation, which led to the disqualification, occurred prior to
written notification of these disqualification penalties, the household
member shall be disqualified in accordance with the disqualification periods
in effect at the time of the rendering of such determination.However, no disqualification penalty may be
imposed which is contrary to court order.

2.Appropriate disqualification penalties (as
outlined in paragraph (2)(a) of this section) shall be imposed (unless
contrary to court order) on household members in the following instances:

(i)An
administrative disqualification hearing official rules that the household
member has committed an intentional program violation.The disqualification period shall begin
with the first month it is administratively feasible (based on computer
cutoff) following the date of the written notification of the hearing
decision sent to the household by Hearings and Appeals.

(ii)The
household member suspected of intentional program violation signs the waiver
of right to an administrative disqualification hearing, and the signed waiver
is received within the timeframe specified by the Department.The disqualification period shall begin
with the first month it is administratively feasible (based on computer
cutoff) following the date of the written notification of the
disqualification from Hearings and Appeals.

(iii)A
court of appropriate jurisdiction finds the household member guilty of
intentional program violation.In such
cases, the Department shall disqualify the individual for the length of time
specified by the court.If the court
fails to impose a disqualification period, the Department shall impose a
disqualification period in accordance with paragraph (2)(a) of this
section.If the court does not specify
a date for initiating the disqualification period, the Department shall
initiate the disqualification period as soon as is administratively feasible.

(iv)The
household member suspected of intentional program violation signs a consent agreement
in cases of pre-trial diversion.The
period of disqualification shall begin as soon as it is administratively
feasible after the date the household member signed the disqualification
consent agreement.

3.Once
a disqualification penalty has been imposed against an individual, the period of disqualification shall
continue uninterrupted until completed regardless of eligibility of the
disqualified member's household.The
disqualified member's household shall continueto be responsible for repayment of the overissuance, which
resulted from the disqualified member's intentional program violation,
regardless of its eligibility for benefits.